NEW BULLISH Plays
Sunshine Heart - SSH - close: 11.07 change: +0.70
Stop Loss: 10.39
Current Gain/Loss: unopened
Entry on September -- at $--.--
Listed on September 05, 2013
Time Frame: 3 to 6 weeks
Average Daily Volume = 329 thousand
New Positions: Yes, see below
Why We Like It:
SSH is in the medical device industry. They specialize on heart assist systems. It's been a rough ride for investors over the last couple of years. Yet it looks like SSH found a bottom in spring and summer this year. The stock took off back in July. Takeover chatter inside the last few months may have boosted SSH's upward momentum. The rally got too hot in August and SSH peaked at $13.80. Since then SSH has seen a -26% correction lower.
Traders just started buying the pullback near round-number support at the $10.00 level yesterday. The rebound continued today with SSH outperforming the market with a +6.7% gain.
Technically the recent action looks like a bullish reversal and a bounce from support.
I do consider this an aggressive, higher-risk trade due to SSH's recent volatility. Nimble traders may want to launch positions immediately. I am suggesting we wait for SSH to trade above today's high (11.47). We'll use a trigger to open positions at $11.55. If triggered our target is $13.70. That's just below the August peak.
I am suggesting we keep our position size small to limit our risk.
Trigger @ 11.55 (small positions)
Suggested Position: buy SSH stock @ (trigger)